The Siam Cement Public Company Limited (SET: SCC), led by President and CEO Thammasak Sethaudom, is strengthening its risk management and supply chain resilience following the easing of Middle East tensions.
By diversifying the sourcing of raw materials beyond the Strait of Hormuz, SCC has ensured continued operation of its Map Ta Phut Olefins plant (MOC), which remains fully supplied and operational. Meanwhile, Rayong Olefins (ROC) is assessing resumption feasibility, with more details expected by July.
SCG Chemicals (SCGC) has restructured investments, reducing its stake in Indonesia’s PT Chandra Asri Pacific Tbk (CAP) by 14.86%—equivalent to THB 24.9 billion. Most proceeds, around THB 16 – 17 billion, will support the ethane project at Long Son Petrochemicals (LSP) in Vietnam to secure long-term cost competitiveness. Remaining funds will go toward debt repayment, aiming to reduce interest expenses and bolster financial strength. SCGC emphasized no immediate plans to divest from its remaining CAP holding.
The LSP plant, currently undergoing a temporary shutdown to switch to ethane feedstock, is expected to accelerate its timeline, possibly commencing earlier than the planned end-2027 date. Thammasak noted that failure to invest in the LSP ethane project could result in recurring revenue losses, as the project is projected to yield annual cost savings of THB 6 – 8 billion and reduce dependence on the volatile Strait of Hormuz.
SCC expects current EBITDA of THB 55 billion to surge post-LSP completion in 2028. In the first quarter of 2026, adjusted cash EBITDA grew 17% year-on-year to THB 14.93 billion, reflecting robust performance.
The company’s three-phase strategy covers immediate, medium, and long-term goals, focusing in the short term on real-time risk management, clean energy use, and financial discipline.
For 2026 – 2027, SCC plans to scale operations regionally through technology upgrades, expanded raw material options, strategic alliances—like potential joint ventures with PTTGC—and a diversified product lineup. In the long run, SCC is targeting sustainable growth through investments in clean energy, circular economy initiatives, and a strong green growth agenda.
SCC is also exploring partnerships with Chinese firms to expand business both within ASEAN and China, targeting an increase in ASEAN revenue share from 2% to 10% within 5 – 10 years.
Kasikorn Securities raised SCC’s 2025 target to THB 248, maintaining a “Buy” call.
UOB Kay Hian highlights improved shipping and naphtha supply conditions, with spread gains of $500 – 550 per ton supporting SCC’s strong earnings outlook, and sets a target price of THB 290.
Yuanta Securities also maintains a “Buy” rating with a THB 260 target price, citing robust spreads and steady dividend yield of around 3% in 2026 – 2027.
Daol Securities values the LSP ethane project positively, keeping a 2026 profit estimate of THB 16.6 billion (up 18% YoY) and a target price of THB 250 per share.
